AC553_W3_Solution7_48 - Less: Insurance reimbursement . . ....

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1 Problem 7-48 Solution Max Computer Center's loss deduction for each casualty and theft is: (a) Robbery-Equipment, Theft Adjusted basis of property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,000 Less: Insurance reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . …. . . . . 7,500 Non personal theft loss deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500 (b) Fire-Truck, Partial casualty—Lesser of adjusted basis ($4,000) or decline in fair market value ($3,000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . $3,000
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Unformatted text preview: Less: Insurance reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500 Non personal casualty loss deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 No loss occurs because the insurance reimbursement is less than the basis. (c) Fire-Equipment, Complete casualty Adjusted basis of property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,000 Less: Insurance reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000 Non personal casualty loss deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,000...
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This note was uploaded on 02/21/2012 for the course ACCOUNTING 553 taught by Professor James during the Spring '12 term at DeVry Phoenix.

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